Who Can Witness a Mortgage Application?

A witness cannot, under any circumstances be an individual who will benefit from the transaction in any way.

Home ownership begins on the closing day, where all involved parties sign the deal, allowing the transfer of property from the seller to you. Closing requirements for property ownership vary by state, with some states requiring you to have a witness for the mortgage processing. A close relative, friend, neighbor or colleague can serve as a witness as long as the person is not party to the transaction in any way. In cases where the notary public serves as a witness, they have to sign twice.

While a witness in mortgage signing may seem insignificant in the closing of the deal, they can come in handy when disputes arise. Look for somebody you can trust and access easily, and who can testify competently if necessary. Your witness can help you keep your property in the midst of a legal battle or even help you recover from losses associated with the ownership of the property.

The Role of a Mortgage Witness

In case of a dispute on the property, a witness can testify and confirm that all parties signed the deed willing fully. This means that at the time of the signing and of the testimony, the witness must be in a position to identify each of the signatories and be present at the actual signing of the deed. Having your witness sign the deed in the absence of some signers is highly risky, and can backfire on you as the witness must be in a position to narrate all the events and circumstances surrounding the signing of the deed.

The individual you choose must be in a position to verify that the signatures provided match the names of the signees, to protect the process from forgery.

The Notary Public as a Witness

Anyone serving as a notary professional in a mortgage signing, as required by some states, must act impartially to prevent fraud or any wrongdoing in the process. Their work involves identity verification for the signatories using state accepted IDs. In situations where a signatory cannot provide an ID, such as a person living with disability without a driver's ID, the notary must get a credible witness to help in the verification of the signatory.

The verification of a credible witness includes getting someone who can vouch for the signatory in case of missing identification, as per the unique state requirements. Such an individual must we well known by the signatory or the notary, or both. The witness must also be in a position to produce valid identification documents; unless the state allows the notary to use a witness they know personally. Lastly, the notary must verify that the witness is not a beneficiary in the property transaction in any way, immediately or in the long-term.

Selecting a Witness

There are several factors to consider when choosing a witness to help with your mortgage. They include:

1. Your witness must be of age; in the State of New Jersey, the individual should be 18 years or older. The individual must also demonstrate a general understanding of the exchange taking place.

2. The individual must also be of sane mind; getting a witness who suffers from dementia or any severe mental disability is dangerous. If it is proven that your witness was not in a state of mind to witness the signing, a dispute later on in the process can invalidate the deed, putting you in more legal trouble.

3. A witness cannot, under any circumstances be an individual who will benefit from the transaction in any way. It is quite common to see people inviting their spouses or adult children to act as witnesses, if they are not part of the deal: this is a quite risky and can compromise the eligibility of the witness in case of a dispute. Additionally, the signers, buyers, their attorneys, the lenders or any other party attached to the deed cannot serve as a witness.

4. Some states require that a Notary Public witness the signing, plus an additional witness. Individuals working in the lender's office or in the legal office can act as witnesses as long as they are accessible and meet the local legal requirements.

Conclusion

If you are considering getting a new home, it is advisable to get a witness to sign on your mortgage, even in situations where you have a foolproof deal. Speak to your legal advisor on the process of involving a witness; they will advise you on how to go about it. You may also need to approach your witness in advance to make sure they are available on the signing day. Avoid taking risks or making mistakes that can affect the credibility of the process or of the witness in case of a dispute on the property in the future.